Facebook
Twitter
Pinterest
Copy Link
Understanding VA Loans
For over 78 years, Veterans Affairs (VA) home loans have provided millions of veterans & their loved ones with the opportunity to buy homes of their own.
“VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy,” according to the U.S. Department of Veterans Affairs.
In addition to helping eligible buyers achieve their homeownership dreams, VA loans offer other benefits to those who qualify:
- Qualified borrowers can often purchase a home with no down payment.
- Many other loans with down payments under 20% require Private Mortgage Insurance(PMI). VA Loans do not require PMI, which means veterans can save on their monthly housing costs.
- VA-Backed Loans often offer competitive terms and mortgage interest rates.
Veterans United states:
“For the vast majority of military borrowers, VA loans represent the most powerful lending program on the market. These flexible, $0-down payment mortgages have helped more than 24 million service members become homeowners since 1944.”
John Bell, Acting Executive Director of the Department of Veterans Affairs Loan Guaranty Service, also explains why this program is so powerful:
“It provides early ownership for many people that would not have that opportunity to begin with. Since there’s no down payment, it allows people to hold their wealth and it gives them the ability to have long term financial security by being able to own a house and let that equity grow.”
Homeownership is the American Dream. Our veterans sacrifice so much in service of our nation, and one way we can honor and thank them is to ensure they have the best information about the benefits of VA home loans.
Thank you for your service!
Should You Still Consider Buying in this Real Estate Market?
The rise in mortgage rates & mounting economic concerns have some people questioning: should I still buy a home this year? While it’s true this year has unique challenges, it’s important to think about the long-term benefits of homeownership before making a decision, according to reports from Keeping Current Matters.
If you know people who bought a home five, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why? The reason is tied to how you gain equity and wealth as home values grow with time.
The National Association of REALTORS® (NAR) says “Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments.”
Even though home price appreciation has slowed lately, home values have still increased significantly in recent years.
Data from the Federal Housing Finance Agency (FHFA) shows just how noteworthy those gains have been over the last five years. Home prices grew on average by almost 64% nationwide over that period.
That means a home’s value can increase substantially in a short time. And if you expand that timeframe even more, the benefit of homeownership and the drastic gains you stand to make become even clearer:
Nationwide, home prices appreciated by an average of over 290% over roughly a 30-year span.
While home price growth varies by state and local area, the nationwide average tells you the typical homeowner who bought a house 30 years ago saw their home almost triple in value over that time. This is why so many homeowners who bought their homes years ago are still happy with their decision.
The alternative to buying a home is renting, and rental prices have been climbing for decades. So why rent and fight annual lease increases with no long-term financial benefit? Instead, consider buying a home. It’s an investment in your future that could set you up for long-term gains.
The bottom line? Don’t let the shifting market delay your dreams. Data shows home values typically appreciate over time, and that gives your net worth a nice boost. If you’re ready to start your journey to homeownership, reach out to me at 847.494.1102 & we’ll get you started. Karen Daugerdas, Coldwell Banker Real Estate Broker.
Multiple Generations Sharing Homes Is On The Rise
For some families, having multi-generations living in one home is common. For others, it’s a necessity. Are you planning to have multi-generations living under one roof?
Whether by choice, economics or necessity, more and more parents, adult children & grandparents are choosing to live together, & those numbers are on the rise.
This “multi-generational living arrangement” comes with benefits for families, but also creates challenges. So how can you make preparations for an easier transition?
- Before you start moving in the packing boxes, have a serious discussion with everyone about their expectations. If you’ve not lived with these family members for years (or ever!) it can be a big adjustment. Be open about privacy concerns, household chores, financial responsibilities, & any family rules so everyone is on the same page.
For example:
Which spaces will be shared & which are off limits?
Will everyone be paying rent, buying groceries, paying electric, heat, insurance or otherwise contribute financially to the household? How will that be divided?
Will someone need access to your vehicle?
How will chores be divided, including cleaning, laundry, shopping, maintenance & food preparation?
What about house rules regarding “quiet hours” or curfews?
What is each family member hoping to gain from the arrangement?
- Check in regularly. Checking in even with the adults, but especially with seniors, gives each person a chance to voice their thoughts & concerns. Make plans to meet on a regular basis to discuss what’s working & what’s not working. Don’t wait until a problem escalates to have a meeting. You will most likely need to do these “check ins” more at the beginning of the transition and less often as rules & “kinks” get worked out. Remember that sometimes these conversations can be difficult. That’s why it’s good to schedule the meetings in advance & allow participants a chance to mentally prepare (or cool down!) for the discussion.
- Plan an end date. If living together is NOT a permanent solution, work together to make an “exit plan” that is clear & that everyone agrees to & understands. Plans change, & you may decide to live together for more or less time, but at least have a blueprint that gives everyone an idea of what to expect. In situations where aging parents move in with their adult children, it’s helpful to decide what will happen if the arrangement does NOT work out. Having a backup plan can preserve relationships when difficult circumstances arise.
Whether you are taking care of an older parent, moving into your child’s home, or have adult children moving back in with you, these strategies can help you navigate your multi-generational living with added success.
For more information, contact Karen Daugerdas, Real Estate Broker & Senior Real Estate Specialist (SRES) at 847.494.1102, karen.daugerdas@cbrealty.com
Selling in Today’s Market
If you’re thinking about selling your home, you may have heard about the housing market slowing down in recent months. While it’s still a sellers’ market, the peak frenzy the market saw over the past two years has cooled some, according to the real estate information base “Keeping Current Matters”.
If you think you’ve missed your chance to sell your house & make a move, the good news is―you haven’t. Motivated buyers are still out there. But you do need to price your house correctly for today’s market.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says: “Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
It’s true that buyer demand has slowed over the past few months. Higher mortgage rates made it more expensive for buyers to qualify for a mortgage & reduced their buying power. Buyers that could afford a $350,000 house in some cases saw their purchasing power drop to below the $300,000 limit. The result is fewer bidding wars and less competition among buyers.
But don’t forget that this is in comparison to the severely overheated market we saw over the past two years. According to the latest Confidence Index from National Association of REALTORs®:
“ … 39% of homes sold above list price, down from 51% a month ago and 50% a year ago.”
While this is a slower pace, serious buyers are still active in the market & they’re buying homes that are priced right. In fact, the Confidence Index also notes the average home is selling in just 14 days.
If you’re planning to sell, work with me to price it for today’s housing market. As buyer demand softens, it’s important to understand this isn’t the same market as last year. It’s not even the same market as just a few months ago. But it is still a Seller’s Market.
You’ll need to adjust your expectations accordingly to meet the market where it is today. Selma Hepp, Interim Lead, Deputy Chief Economist at CoreLogic, explains what’s happening and what it means when you sell:
“Signs of a broader slowdown in the housing market are evident … This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates … Nevertheless, buyers still remain interested, which is keeping the market competitive, particularly for attractive homes that are properly priced.”
If you’re considering selling, call me at 847.494.1102 & we’ll create a strategic plan.
Karen Daugerdas, Coldwell Banker Real Estate Broker
Six Factors that Affect the Sale of your Home
The six factors that influence the sale of your property are:
*Location
*Competition
*Available Financing
*Buyers Likes & Dislikes
*Marketing
*Price
Out of these six, we only have control of the last two: Marketing & Price. I can take care of the Marketing. But you, as the Seller, control the Price. By pricing COMPETITIVELY, you’ll be able to negotiate UP, rather than having to negotiate DOWN. Call me today & we’ll make a strategic plan to get your property sold! Karen Daugerdas, Coldwell Banker REALTOR®. 847.494.1102
Is there a wave of foreclosures coming?
Is there a wave of foreclosures coming to the real estate market?
When the pandemic hit in 2020, many experts thought the housing market would crash. They feared job loss and economic uncertainty would lead to a wave of foreclosures, similar to when the housing bubble burst over a decade ago. The forbearance program changed that, according to Keeping Current Matters, the real estate research group. It provided much-needed relief for homeowners so a foreclosure crisis wouldn’t happen again.
Forbearance enabled nearly five million homeowners to get back on their feet in a time when having the security and protection of a home was more important than ever. Those in need were able to work with their banks and lenders to stay in their homes rather than go into foreclosure. Since so many people can stay in their homes and work out alternative options, there won’t be a wave of foreclosures coming to the market. And while rising slightly, foreclosures today are still nowhere near the levels seen in the housing crisis.
In addition, lending standards have improved significantly since the housing bubble burst, and that’s one more thing keeping foreclosure filings low. Homeowners have options they just didn’t have in the housing crisis when so many people owed more on their mortgages than their homes were worth. Thanks to their equity and the current undersupply of homes on the market, homeowners can sell their houses, make a move, and not have to go through the foreclosure process that led to the housing market crash in 2008.
The forbearance program was a game changer for homeowners in need. It’s one of the big reasons why we won’t see a wave of foreclosures coming to the market.
